I made a massive mistake on tax credit renewal

Bogsnorkler

As the title states...

I had just completed my tax self assessment before completing my tax credit renewal and for some reason that is beyond me I misread 'earnings as an employee' as 'earnings before expenditure', so I wrote that in and then I put in my earnings from self employment (in the correct box) By doing so I increased my actual earnings by over £13,000. This has generated a £6000 'overpayment' and my tax credits have been stopped.

I received my award letter and noticed the mistake, called straightaway to rectify. The lady said she had amended the figures and I'd receive a new award letter in a couple of weeks. Instead I received a letter basically saying tough, we cannot change it as it has been finalised. It said I had 30 days from my tax credit finalisation date to ask them to look at the decision again, but I received the letter saying this exactly 30 days from then!

I called again and have submitted an appeal, does anyone know if this is likely to be rectified? £6000 for an error (plus the tax credits I'm no longer receiving) seems so horrendously harsh, I feel sick!

Mensch

Unfortunately you have no chance of getting this resolved in your favour. The deadline was 31/07/15. They won't change anything submitted after that date.

Icequeen99

Mensch wrote: »

Unfortunately you have no chance of getting this resolved in your favour. The deadline was 31/07/15. They won't change anything submitted after that date.

That isn't correct. There are several ways an award can be changed after finalisation - the one open to the OP is mandatory reconsideration/appeal.


OP - What was the date on the final award notice? And importantly, what date did you call them? What was the date on the letter and what exactly was the wording on the letter?

It may be that you need to request a late mandatory reconsideration on the grounds that you did contact the within 30 days and that this should have been treated/you should have been told to appeal.

IQ

Bogsnorkler

Thank you for your replies,
My award was finalised on the 22nd July, I received the notice on the 4th August, this is when I noticed the error and I called them straightaway and told them. I was led to believe that the numbers would be amended and that was the end of it.

I received the next letter on 21st August (dated the 11th august) thanking me for telling them about my income. It says:

Unfortunately the 31st deadline for providing information has passed and we have already finalised your award for this period. We made our decision to finalise your claim on 22 July 2015. The law only allows us to change this decision in certain circumstances and updating the income is not one of those.

It then goes on to say about writing to them within 30 days of the finalisation date and requesting a mandatory review.
I called again that evening and was told to fill out form TC846, which I was told is to appeal against the overpayment, however, I read that you cannot file an appeal without a mandatory reconsideration. I have sent off both the form and a request for M R.

Bogsnorkler

Goodness, this is a fiasco! Does anyone receive correct advice from that place?!! The form you suggested looks to be more appropriate, the lady I spoke to definitely called it an appeal! I have already sent that form off along with a letter asking them to look at their decision again, I mentioned that I called to rectify things and that I had only just received the letter detailing the M R process but didn't make a big deal of it. Do you think I should await a response from the letter or fill in the form suggested straightaway and send that off to?

Thanks so much for your response

Icequeen99

I would suggest you send in the MR form and list all of the dates you mention above.

I would suggest you state that you made contact with HMRC on 4th August and have been led to believe the income would be changed an and that you were then given incorrect information to dispute rather than appeal hence you are slightly outside the 30 day time limit.

IQ

Icequeen99

blondebubbles wrote: »

Wouldn't the 30days apply from 11th August, the date of the letter stating they wouldn't update the change?

The 30 days only runs from certain legislative decisions, so unless the letter was under one of those then it wouldn't have a 30 day time limit attached.

The s.18 notice will. Unless this letter was a mandatory reconsideration decision itself then it would.

IQ

Bogsnorkler

Thank you for your help, the next steps are a lot clearer now!

lindsmat

hi,Bogsnorkler, wondered how you have got on with your tax credit problem as im in the similar position. when filling out my tax credit i put gross income instead of net (my husband is self employed). its my first time in filling out the form. i was given less than half our tax credit, we now are just managing to keep our bills paid. they wont just change it even though i have our self assessment for proof. i have to wait 6 weeks to be contacted after making a mandatory reconsideration appeal.

Bogsnorkler

It is absolutely ridiculous isn't it?!!

I sent in the mandatory reconsideration request like the letter i received told me to and also the overpayments appeal form like they told me to do on the phone. The other day I had a revised award letter through which was exactly the same as the wrong one! So I called up again... put through to appeals... lady disappeared for ages, came back and said they can't do anything until the MR has been looked at... same as you, within 6 weeks. I should expect to hear something by 6th October.